We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honda (HMC) Q1 Earnings Top, Sales Miss Estimates, FY22 View Up
Read MoreHide Full Article
Honda Motor (HMC - Free Report) reported earnings of $1.18 per ADR for first-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line also reversed the year-ago loss of 44 cents per share. However, quarterly revenues totaled $32,742 million, missing the Zacks Consensus Estimate of $33,858 million. Nonetheless, the top line surged 65.8%, year on year.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period ended Jun 30, 2021, revenues from the Automobile segment increased 79.4% year over year to ¥2.3 trillion ($20.6 billion). The segment registered an operating profit of ¥70.7 billion ($645.7 million), reversing the year-ago quarter’s loss of ¥195.9 billion. Increase in profit owing to changes in sales volume and model mix resulted in this upside.
Revenues from the Motorcycle segment came in at ¥518.2 billion ($4.7 billion), jumping 89% year over year. The unit’s operating profit came in at ¥80.7 billion ($737 million), up a whopping 620% year over year. Increase in profit owing to changes in sales volume and model mix drove this uptick.
Revenues from the Financial Services segment totaled ¥767.5 billion ($7 billion), climbing 32.6% year on year. The unit’s operating profit increased 28.8% year over year to ¥92.2 billion ($842.4 million). This upswing primarily resulted from the higher year-on-year used vehicles prices.
Revenues from the Life Creation and Other Business came in at ¥99.2 billion ($719.7 million), up 35.2% year over year. However, the segment incurred an operating loss of ¥391 million ($3.6 million) compared with the loss of ¥573 million posted in the corresponding period of the prior year. Changes in sales volume and model mix aided the results.
Dividend, Financials & Buyback
The Zacks Rank #3 (Hold) company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110 per share, which includes an interim and a year-end cash dividend of ¥55 per share each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated cash and cash equivalents were ¥2.5 trillion ($22.5 billion) as of Jun 30, 2021. Long-term debt was ¥4.5 trillion ($40.1 billion).
For the purpose of improved capital efficiency, the company plans to buy back up to 18 million shares or shares worth a maximum sum of ¥70 billion between the period Aug 5 and Dec 31, 2021.
Upbeat FY 2022 Outlook
For fiscal 2022, Honda — peers of which include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — forecasts sales and operating profit of ¥15.45 trillion and ¥780 billion, respectively, up from the earlier estimate of ¥15.2 trillion and ¥660 billion, respectively. Both the sales and operating profit projections indicate an upswing from the ¥13.2 trillion and ¥660 billion, respectively, recorded in fiscal 2021.
The company’s R&D expenses for fiscal 2022 are likely to be ¥840 billion, suggesting a rise from the ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating a decrease from the ¥321.2 billion spent in fiscal 2021.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Honda (HMC) Q1 Earnings Top, Sales Miss Estimates, FY22 View Up
Honda Motor (HMC - Free Report) reported earnings of $1.18 per ADR for first-quarter fiscal 2022, surpassing the Zacks Consensus Estimate of 74 cents. The bottom line also reversed the year-ago loss of 44 cents per share. However, quarterly revenues totaled $32,742 million, missing the Zacks Consensus Estimate of $33,858 million. Nonetheless, the top line surged 65.8%, year on year.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote
Segmental Highlights
For the three-month period ended Jun 30, 2021, revenues from the Automobile segment increased 79.4% year over year to ¥2.3 trillion ($20.6 billion). The segment registered an operating profit of ¥70.7 billion ($645.7 million), reversing the year-ago quarter’s loss of ¥195.9 billion. Increase in profit owing to changes in sales volume and model mix resulted in this upside.
Revenues from the Motorcycle segment came in at ¥518.2 billion ($4.7 billion), jumping 89% year over year. The unit’s operating profit came in at ¥80.7 billion ($737 million), up a whopping 620% year over year. Increase in profit owing to changes in sales volume and model mix drove this uptick.
Revenues from the Financial Services segment totaled ¥767.5 billion ($7 billion), climbing 32.6% year on year. The unit’s operating profit increased 28.8% year over year to ¥92.2 billion ($842.4 million). This upswing primarily resulted from the higher year-on-year used vehicles prices.
Revenues from the Life Creation and Other Business came in at ¥99.2 billion ($719.7 million), up 35.2% year over year. However, the segment incurred an operating loss of ¥391 million ($3.6 million) compared with the loss of ¥573 million posted in the corresponding period of the prior year. Changes in sales volume and model mix aided the results.
Dividend, Financials & Buyback
The Zacks Rank #3 (Hold) company’s total annual dividend per share to be paid for fiscal 2022 is projected at ¥110 per share, which includes an interim and a year-end cash dividend of ¥55 per share each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated cash and cash equivalents were ¥2.5 trillion ($22.5 billion) as of Jun 30, 2021. Long-term debt was ¥4.5 trillion ($40.1 billion).
For the purpose of improved capital efficiency, the company plans to buy back up to 18 million shares or shares worth a maximum sum of ¥70 billion between the period Aug 5 and Dec 31, 2021.
Upbeat FY 2022 Outlook
For fiscal 2022, Honda — peers of which include Toyota (TM - Free Report) , Volkswagen (VWAGY - Free Report) and General Motors (GM - Free Report) — forecasts sales and operating profit of ¥15.45 trillion and ¥780 billion, respectively, up from the earlier estimate of ¥15.2 trillion and ¥660 billion, respectively. Both the sales and operating profit projections indicate an upswing from the ¥13.2 trillion and ¥660 billion, respectively, recorded in fiscal 2021.
The company’s R&D expenses for fiscal 2022 are likely to be ¥840 billion, suggesting a rise from the ¥780 billion spent in fiscal 2021. Capex is envisioned at ¥320 billion, indicating a decrease from the ¥321.2 billion spent in fiscal 2021.